Globalization and

HRM
By
Rajashree Vare
MS 252
Do the geographical and the national boundaries limit a business in
the world of the 21st century? The answer is simply "NO".


The term Globalization has invaded the mind of every successful
businessman and the concept of Global Village is a common issue in
the modern business world.
What really the globalization is?

The answer seems simple "if a
firm or an organization
expands its sales or production
beyond the national
boundaries, then it is
globalization.
When going global, an organization has to reconsider the following
factors:
a. Employment Laws
b. Culture
c. Terminology
d. Corporate Social Responsibility


Globalization and HRM

Globalization is a process that is drawing people together from all
nations of the world into a single community linked by the vast
network of communication technologies.

This aspect of globalization has also affected the HRM in the
business world of today. HR managers today not need to rely in a
small limited market to find the right employees needed to meet the
global challenge, but today they can recruit the employees from
around the world.
Besides that the effective data based which is being used globally
today also has made HRM a simple but effective task. Thus due to
globalization to some extent HRM has became more efficient and
effective, but relatively a simple task.

The most important factor that these organizations are made up of
People, and since HRM is the set of activities which deals with the
people factor present in any organization, this change has affected
The Human Resources Management itself a lot. Human resources
manager of today must ensure that the appropriate mix of employees
in terms of knowledge, skills and culture.



Globalization and HRM


Globalization and HRM

Global HRM refers to Human
Resource Management
practices that deal with
managing a diversity of
workforce from all around the
world.

The following challenges are
being faced by HR managers in
terms of globalization:


Drivers of Globalization
Market Drivers:
Convergence of per capita income
Convergence of life styles
Organizations behavior as global customers


Cost Drivers:
Push for economic scale
Advances in transportation
Emergence of newly industrial countries with productive
capability and low labor costs

Competitive Drivers:
Growth of global networks making countries interdependent
Rise of new competitors intent on becoming global competitors
Increased formation of global strategies alliances

Government Drivers:
Reduction on tariffs and other trade barriers
Privatization of industries in many parts of the world
Creation of trade blocks
(i.e. EU-European Union, an international organization of European
countries formed after World War to reduce trade barriers and increase
co operation among its members.)
Drivers of Globalization
Conclusion
The globalization is a HRM Challenge. The HRM Function has to
make its policies, procedures and processes to work on the global
level. Currently, most of the HRM Policies is focused on the concrete
country, but the employees have to start to move from the country to
another country and the HRM Processes have to be able to support
such a need in the organization. The globalization has a huge impact
on the HRM Function and the it is usually not ready to take more
responsibility in the movement of the workforce around the Globe.